How does a loan against my car work?
Asset based finance presents a viable and resourceful solution for those seeking to unlock the financial potential of their valuable assets while still maintaining control and usage of those assets. If you are wondering, “Can I take out a loan against my car?” the answer is yes!
Complete our easy online application form to get the application process started.
Our consultants will contact you to discuss your application and gather additional information.
We will finalise and process your application and contact you with the outcome.
Understanding asset based finance
Asset based finance is a specialised form of lending that allows individuals and businesses to secure loans by leveraging their tangible assets as collateral. This type of financing provides an alternative solution for those who may not qualify for traditional loans due to poor credit history or other financial considerations. With AutoFin Assist, borrowers can access funds quickly and efficiently, often with more competitive interest rates.
Frequently Asked Questions
Can I get a loan against a car that is not fully paid off?
Yes, it is possible to get a loan against a car that is not fully paid off. The amount you can borrow will depend on the equity you have in the vehicle.
What happens if I default on my loan?
If you default on a loan against your car, the lender has the right to repossess the vehicle to recover the outstanding debt. Once the car is repossessed, it may be sold at an auction to recoup the remaining loan balance. If the sale proceeds do not cover the entire outstanding amount, you may still be responsible for paying the shortfall.
Can I apply for a loan against my car with bad credit?
Yes, you can apply for a loan against your car even with a low credit score. Since the loan is secured by your vehicle as collateral, lenders are often more willing to approve loans for individuals with poor credit history, as the risk of default is mitigated by the security of the asset in question.
The value of your vehicle
Owning a valuable asset, such as a car, plays a crucial role in securing a loan, particularly for individuals who may not qualify for traditional financing options due to limited credit history or low credit scores. A car, being a tangible and easily valued asset, can be offered as collateral to obtain an asset based loan, granting lenders confidence and the reassurance that the loan will be repaid.
Possessing a vehicle bolsters a borrower’s chances of obtaining a loan and provides financial adaptability and ease, empowering them to address their monetary needs without sacrificing the convenience of foregoing their vehicle!
What are the benefits of taking a loan against my car?
Fast and easy application process
Taking a loan against your car is easy and straightforward. Unlike traditional loans that may take weeks to approve, loans against collateral are typically processed within a few days. This expedited process enables our clients to quickly access the funds they need, making it an ideal solution for urgent financial situations.
No lengthy paperwork
Since the loan is primarily based on the value of your vehicle, they are quicker to negotiate. This is often more beneficial for individuals with a poor credit history or those without a credit record. We can help you successfully apply for an asset-based loan.
Competitive interest rates
Loans against collateral generally offer more competitive interest rates. Since the vehicle serves as collateral, lenders face lower risks in case of default, which allows them to offer more attractive interest terms, resulting in significant savings on total repayments.
You can still use your asset!
One of the most appealing aspects of securing a loan against your car is the ability to continue using your vehicle throughout the repayment period. Lenders understand the importance of having access to transportation for daily activities and business operations, which has led to borrowers being able to retain possession of their cars while making regular repayments.
Tips for maximising your asset based loan
To maximise the loan amount for your car, it is crucial to prioritise regular vehicle maintenance, as it guarantees that your car retains its value over time. A well-maintained car is more likely to secure a higher loan amount, as it reflects lower risks and higher resale potential. By keeping your car in excellent condition through routine servicing and timely repairs, you can prove to potential lenders that your vehicle is a valuable asset.
Our team will work closely with you to negotiate fair terms and conditions with the lender that yields a competitive offer. We can help you navigate the lending process with confidence through industry insights that maximise the loan amount you can obtain.
Unlock the Value of Your Vehicle with AutoFin Assist
A loan against my car can be an effective and convenient solution for addressing financial needs. Leveraging the value of your vehicle can unlock access to funds without undergoing extensive credit checks or paperwork. Don’t let financial challenges hold you back – take advantage of the equity in your vehicle and secure the funds you need with AutoFin Assist.
Explore our flexible and tailored financing options.